take a look at this cuddly guy. kind of cute, right? but not like the bears taking over on wall street right now. we will leave you with this amazing video. a hunter climbing a tree. oh, look at that. up close and personal. >> kind of day it's been too. the big market sell off, we will see you tomorrow. >> welcome back, everybody. breaking news. fed-induced sell off continuing in a big way as we approach the final stretch. welcome to the "closing bell." >> the last time, and you see the dow down 2.3%. nasdaq is down 2 plus percent. s&p down even more. and the last time you had all three averages down more than it% on the same day was the day after the election last year.

so the market have this day after kind of syndrome going here on the day after ben bernanke laid out a pretty clear agenda for when the fed may be pulling back on the qe. we are at the lows of the day, with 361 point. at this point we are looking at decline of 4.7% at the highs. we are looking at a correction of about 5% from the highs reached in may. 10-year hit 10.47% and really anything intersensitive, gold and silver very sensitive. so all kind of moving parts and pieces as we watch into the final hour. bob pisani, robert?

>> yeah, let's pull up the screen. crick the's own asset bubbles, don't kid yourself. and finally options expiration. normally an factor, but i think it is today. look at the s&p 500. we dropped below it 16 on the s&p 500. and tomorrow is an options expiration date. 1600 a big interest point. once you stay below that market makers are likely doing to have to sell more into the close. that's a big issue down here and normally it is not. let's move on. let's move back back into the united states. big two-day rally. that is hurting commodity and commodity stocks. even base metals like copper and zinc seeing declines as well. that's hurting the commodity stocks. this is one of the weakest groups here. you see, unusually large declines here, about 4% in some

of the big commodity names. how about sectors. really no point in putting them up. whether you are defensive or not defensive sectors here, utilities, consumer discretionary, doesn't matter what ones you are talking about. they are all down about 2% or 2.5%. maria is right. down about 4.8 frers closing high of a few weeks ago. however, bear in mind everybody, we are still up roughly 12% on the year on the s&p 500. still a pretty good year. want to remind everybody of that fact. >> good point. we just got word from your buddy, we are now taking out gains for june and may. remember what a great month the marketeted on the month of may. let's talk about the "closing bell" exchange. sam stoval, jim bianco, warren

meyers, and our own rick santelli is in chicago as well. put it in perspective for us, here. >> i think we are seeing the volatility lacking over the past 12, 18 months. we've only had two days, if we close down 2% today, only two times since the beginning of this year, that the s&p was off by 2% or more in a single day. we had 21 such days in 2011 and average of 15 going back to 2000. so volatility really was missing in action and really just now coming back. >> warren meyers, what are you seeing out there from dme securities at this point. do we go lower by the close? how are you feeling about this sell-off? >> looking at early market on close and balances, we were fairly neutral on those numbers so far. that's not giving me much indication either way. i don't see any real impetus to stop this decline. i say we will be hanging around these levels for the rest of the day.

>> would you rather see a wash-out here in terms of feeling like, you know, better days are on the horizon or do you think we will be stuck in this for the long period? >> i think most traders look for that wash out opportunity to jump in. i don't know if we will see that any more than what we have seen today. there is a sense of, not of panic, but quite a bit of concern on people i've talked to today. that this is sell off has been maybe bigger than they anticipated. i think that's giving them pause. but i don't think we will get the wash out. i think we will be down, you know, 1.5, 2% today, a little over 2% today, rather. and again, at one point bob pisani brought up is that quadruple, expiration tomorrow, i think that's a big factor. we may not see much turn around today but if we get through friday, maybe next week, we can see a little bit of a pick up. >> that will add the gamesmanship, that for sure. rick is the bond market calling

the shot here? is that what is going on? >> well, i think it is integral and in a world where the market believe this is the appropriate time to step out and try to price what a world without fed management would look like. and it is not going to be pretty and to go from current levels to whatever that new level is, you have to hit all the steps and levels in between. bob said a lot of good things. up 12% on the s&p. think fishing, cut bait. or think defensive trading. many traders trying to protect their nest eggs. that makes sense. but interest rates really interesting. because you have the funding issues in china and even those stocks are going down, which normally pushes rates down a bit. i think that the increase in rates momentum is going to surge at times but i don't think it will continue to surge in one linear fashion. >> jim bianco, are you going to buy this dip here? what are you going to do?

>> i think what it is showing us is how big and powerful the fed is in showing liquidy in the market. just the perception they will take it away is causing problems from china, to merging market to the united states. still too early to buy the dip right now. >> why is that? why is it too early? how much more carnage are you expecting, jim? >> typically, you see a quite to quality in treasuries. we aren't seeing any hint of that right now. the market will continue to sink until we start to see some kind of flight to quality or change to behavior. seems like it's got a way to go. >> i wonder, where is the flight to quality? today there is nowhere to hide. you've got bond, gold, stocks. all heading lower. so where do you hide? you just raise cash here? >> that what's been happening at least with the mutual fund. there is huge outflow and big outflow out of stock funds and

everything in the cash. it is a liquiditiy trade. everything is being hit so you've got to go to cash. >> is that where you would go? >> as maria said, we are come together end of the quarter. no one wands to show hoe are holding bonds, high yielding stocks. moving into cash. our feeling is this now if there is a likelihood we have broken and closed below the june 6 low, then we are probably testing areas around 1540 or so on the s&p. which is a decline of about 8% or so. >> and you guys have prices on the s&p, 12-month bases. and sf, 17 -- >> 1780 for 12 months. if you annualize that, that is a shade above 1700. >> you have to change that if we go to 1540, do you think? >> not at all. i could tell you would ask the question based on the smerk on your face. no, my feeling is that a lot of people are thinking this is a massive game-changer and we could be heading for a correction. maybe even a bear market.

you need a game-changer to even just get shared prices to go lower. >> what's the game-changer? we knew we wouldn't be in quantitative easing for every? what the game-changer? the economy getting better? >> think investors don't believe what bernanke is telling us. that the economy is stronger. and that it is a lack of confidence in the economy's ability a to stand on its two feet without all of this liquidity. >> and do you think this is old-fashioned profit taking? we've had good gains for 2013. we've had good gains for last four years. is it time to take something off the table for that reason. >> think i so. and a couple dayes with twloost days of run up with the announcement yesterday was short-covering. so i think you have people on the shore wagon as well. i think it is a combination of profits and the move down today. >> have you a triple witch tomorrow right? expiration coming tomorrow.

how does that impact things? >> i think that exaggerates the moods. usually you see a lot of activity and volume and movement. and what we have seen the last few days is a heavy down days. i think the on coming combination exaggerate the move and puts pressure in that direction of the movement in this case down and exaggerate this move. not quite a bit but, significantly amount today, i believe. >> maria -- listen, i've seen a lot of witches around here and future is integral in that process. my observation is when the market moves away from a price structure so dramatically, and such a short period of time, i personally don't think that witch is going to make a whole lot of difference. how many people do you know that add boat load of puts at much lower strikes and even if they did, i don't see that the convergence is there, make a big difference to the marketplace. >> they are running for cover at that point. you're right. rick, the dollars at very strong rally here, what are you guys

talking about? is that going to continue or what is dwing on here? >> that summarizes that best. we look at oil and we understand dollar denominate. when you look at gold, it is not just weak against our currency, it is weak against other currencies, not denominated against. i any we all need to think different with interest rates. we are now getting into a universe where many of you don't like fixed income product. but as a holder of gold and uncertain times, with less fed, at some point maybe a certain security product, and garner a rate than it did weeks ago, maybe a substitute investment for the gold bonds. >> thanks, everybody. >> thank you very much. >> he said smirking at sam stoval again. this is barn-burner as we head towards the close. dow down 327 points at the low

we were down 353. >> you've got to ask, is h th major sell-off an overreaction? our steve liesman will make the case. >> despite the ugly two-day decline on wall street, there are some pockets of green. we will find out who is making money on the break. that and more coming up on the most important hour of the trading day. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.

>> marie kra there are dayers on this down day. we will talk with game stop with a new 52-week high. the fans of the xbox console can sell or lend used games. analysts at oppenheimer say this means continued strength in the core rate business. they say this outperforms the target by 50 bucks. finisar, and check ought clear

wire, sprint livingity off to $5 a share. besting dish's offer. that stock higher on the news. finally, analyst telling zion, despite the short term raid trading call, they have a perform and price target of $28 will on the stock. zion up some 8.1%. maria, back to you. >> dow jones plunging today. down better than 330 point. as you heard earlier. low down 350 point earlier. we are continuing to see reaction from federal reserves comment yesterday that they will likely begin to taper down that stimulus later in the year. probably september is what trading is betting on. >> is this overdone? that what we will talk about is basically the fed is doing what it signals it would do. is it an overreaction or is there a chance that ben befr nanky is making a mistake and the economy is not ready for the

tapering, which in this case, a sell-off may be justified. steve liesman, with jeff sika. steve, make the point. is it ready at this point? >> i think it depend on how the fed is judging it. the judging is based on how the -- the shape the economy was in when the fed started this. i think the case could be made that the qe could be lower. i don't think there is a case that qe should be ended. the idea that the fed may buy, i don't know, another 3, 4, $500 billion of assets from here. remember, still doing it for another year. so what we have, bill, is a contest between the market's fears over the end of tapering and feds cash which will still be coming into the market. the market's fears are prevailing today and i think something the investor should ask themselves, does that cash, actual purchase of assets that

will apparently go off for another year end up overwhelming those fears. >> and they even said, this is data dependent. so if the data comes in weaker than expected, perhaps that timetable is pushed out. jeff sika, in terms of your own wealth manage many here, what do you do on a day like today? >> it is interesting that most client were thinking that ben bernanke had the keys to the kingdom and that this whatever he said yesterday as long as it doesn't include anything regarding tapering that the market would continue to go up. we are seeing what is plid out right now as the law of diminishing returns. we have been hearing ben bernanke seize control of the stock market and promised that he would be there to catch it if it falls. now investors are beginning to question whether in fact not only does the fed have the ability to stimulate the economy but whether the fed could really change investor behavior. that's what this is all about. it is all about the psychology and market and how investors are

viewing whether or not they taper the only thing held up to the market at this point. the liquidity by the fed. this is an awakening for a lot of investors because when you throw away fundamentals, when you throw away everything to do with macroening economicses and your sole focus is on this one man and how he feels the economy is doing, that's not a healthy place for a market. >> let me ask you again, jeff. what are you telling client to do today, then. >> i tell client, you are selling up to this and whatever cash you have, we have to let this settle out. this is not over. granted, there will be volatility. but i'm telling clieent to raise cash and just wait. wait until this plays out. >> steve, during his news conference yesterday, ben bernanke noeld ytold you guys h

surprised. do you think they didn't anticipate this reaction in the bond market? >> i think they anticipated it, but i don't think they can control it. we have been talking about this for months and months. the fed's deep concern that any movement in policy, be it one penny less of quantitative easing would cause the market to price in the terminal rate, to get all the way out in front of the fed and to bring forward an interest rate that the fed itself doesn't feel the economy can bear. this has been the concern of the federal reserve, if you go back and read the stuff that bernanke said yesterday, that we wrong if you think this means interest rate hikes. you are wrong if you think we are tightening on the economy. there must have been a half dozen times he said that. and today in a sense you are seeing the lack of results. his inability to communicate that to markets. >> what is that rate, do you think? what is the breaking point for the economy? >> depend on what underlying growth is.

i think we would make a mistake that if we drew a line in the sand, the economy will tank. under a nominal growth is 5% and inflation is 2%, that's okay. you do that kind of math. ifunder are lying growth is 2.5, 3% economy, it shouldn't be a problem with standing the economy. >> but that's the point though. 2%, 3% economy. on the other side of the coin, if the economy is anemic and not improving the way people think it is, that will hit earnings. so jeff, do you say we wait this out? how worried are you that in fact earnings will start getting hit? then we look at valuations and look at the market in a different way? >> it is absolutely kwaunt fiebl that earnings will get hit as costs raise, as interest rates rise. keep in behind that -- >> hey, jeff, i'm sitting right next to him. you don't mind if i ask him a

question. >> lean right over there. >> companies have the best balance sheets in the history of capitalism, right? they are at longer rates. >> they aren't doing anything with it. >> that's fine. but to jeff's point that a higher rates are going to hit the bottom line, i have to think this rise in interest rates will be the least consequential in history for corporate america. >> what i see is that you have the main corporations, s&p 500, they are boroughing exorbitant amount of money. at least enough to fund revenue. if you look at using that borrowing and purchasing back stock or whatever they are doing to that mimicking growth, if you take the stand and balance sheet, despite the fact that there is still a level of revenue, you look at last quarter's revenue, revenue was nothing. revenue was a problem. absolutely. >> good stuff, guys. thank you both. see you later. >> we are at the lows of the day

right now, bill. >> right now, 40 minutes left here. all things housing haven't exactly been red-hot. will rising interest rates crash that party. we will look at the impact the fed is having on housing stocks, coming up. >> by the way, getting hit in a big way. and conventional wisdom, and jeff cox says that kind of thinking is dead wrong. he will tell us why later on "closing bell." back in a moment. ♪

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particularly economic sensitive ones like housing like financials, bill? >> all right, housing stocks getting crushed on fears of higher interest rates. will kill the rebound in home prices. home builders index, the h -- the xhb, down more than 4% right now. this is despite a better than expected increase in existing home sales for the month of may that we heard about. is this sell off a buying opportunity, he asked?

let's talk numbers on the technical side. jc o'hara and on the fundamental side, jc cruz. what do you think? these home builders, is it time to buy or are you going to let it settle out some more? >> over the last few days, there's been some extreme weakness. if you take a step back and look at longer term picture, up trend is still in tact. if you look at 2011 lows, the xp is right above 29. you have to hold. you need it to close below 2 the to think about getting out of your position. over the last few years, look how many times we pulled back, test the uptrend line only to rally higher. if you are a trend follower you have to stick with your long position here. >> jc, i will concede it is a

very good looking chart. but to me the important part is not where has it been but where is it going? i think if you bet on homes, you will end up home alone like macaulay culkin. this is a problem for this sector, even when rate were at absolute historic lows. we didn't see an up take in demand. rates ticking up, i think is only making that situation worse. so i think these builders have gotten way ahead of themselves and i think the price action today is indicative after needed cleansing out in this sector. i agree with you with the home builders. if you look at xhb, not necessarily home builders atf but housing atf. you have to go down to 15th largest position to find a true home builder. you have stocks in there like home depot and whirl pool. these are very, very good charts. if you look at home builder chart individually, like when

lenards, you have home charts holding you higher. you have a nice back and forth here. which is why i can't sell. i have to hold on -- >> steve, you -- >> you think interest rate are going much higher from here, do you? >> i don't necessarily. but the fact we didn't see in terms of housing demand out there, housing demand primarily from cash buyers. in other word, interest rate weren't that important to the housing recovery that we have already seen. i'm saying higher rates certainly aren't going to help but i don't think rate will skyrocket from here. i don't think there is that kind of inflation. i think for home builders, which you mentioned toll brothers, which is one of the weakest names, they are down on the year and it is trading at a rich pe. paying 20 times next year's estimates it buy into toll brothers. i think that's a very poor bet. >> thank you both. >> good stuff on home builders today. >> thank you. >> we are about 30 minutes away from the "closing bell."

dow is down 334 point. >> historically rising rates. helping profit margins for banks. a lot of people like the financials. but jeff cox says this time might not be bullish for banks. he will explain why up next. >> house speaker john boehner knows who to blame for the market sell off. >> the sell off, is in large part due to the policies we've had coming out of the federal reserve. >> and he says a lot more than that about the federal reserve and this sell off. stick around. my exclusive interview with the speaker of the house, john boehner, later on the "closing bell." tdd#: 1-800-345-2550 opportunities are waiting to be found in faraway places. tdd#: 1-800-345-2550 markets on the rise. tdd#: 1-800-345-2550 companies breaking through.

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welcome back. it is the worst day of the year for the market. normally you would think that higher interest rates would be a positive for banks. but our jeff cox says these are not normal times.

he is with us right now to explain. over to you, jeff. >> thanks, maria. i have to tell you i was surprise bid this myself somewhat. i think that intuition would be this would be good for banks. but bernstein research was out with numberes this morning. they went back 40 years an studies they numbers. basically, in a rising rate environment, banks sufrt worst. they collectively fall 3.8% over three-month period in a rising-rate climate. i think there are three reasons. one, because of the net interest margins that is where we borrow short and lend long. also, banks own a lot of bonds. we know what is going to happen as far as bond values go. when rates go higher. also i just think more in the present here, if there's a sector right now that's due to kul of cool off, it is the banking stocks. >> rerecently jamie dimon said

they would make 200 million on every basis point in moves. >> that, the logical point. but up is down, down is up. and i think it is a difficult calculus that things have to use here to navigate their way through. it is probably a pretty nasty mine field ahead. >> jeff, stay here. not everyone agrees with your point of view. >> joining us to make his case and why rising rates are positive for banks. brendon hawkin of ubs, what do you think of jeff's reasoning and traditional reasoning says a steeper yield curve is better for banks but that's not always the case. what do you think? >> classically, bet are for banks, expanding net margin. if we look at net interest margin with rates coming down the last several quarters, we have seen compression. now that we have seen the yield curve steepen, a fundamentally, that's going to drive better net margin.

now jeff's point is well taken that they have bond portfolios and therefore they will take a hit. that's a one-time hit. they are in a great capital position. i'm speaking to the banks and brokers. these guys are above or next to nine bozel tier 31. so they've got plenty of capital to absorb a one-time hit in adjustments. bond portfolios are very, very short. duration tightening up to two years or less, in many of the portfolios. they've known that these higher rates are coming for quite some time and they position themselves accordingly. i think they will be in a really solid position and actually we can see earnings power expand. >> those bond of requirements you are talking about, that much more capital they put on their balance sheet at the requirement of regulators to fend off another financial debacle as we head into 2008-'09.

>> and already in compliance. >> as long as you are careful with how you buy, this is a very volatile group, if you take a look -- >> but it is still a new normal in many regard and not just them. you have regulators all over the world. you've got litigation costs rising. so -- >> sure. >> other things are going on here. >> sure, maria. all that's true. but all that's pretty well understood as well as pretty well baked into numbers. as you look at 2014 numbers, you have some of the banks at 8.5 times the whole group at the 1/the 1/9.5. valuations aren't stretched. i think that's more than reflected in valuations. so as long as you are careful and diligent in the ones you pick, you can still choose winning stocks here. >> jeff, what do you think? >> i think that contemplating anything baked in the numbers here is a pretty dangerous game.

i don't think anybody knows what is really going to happen as we start to roll everything back here. you know, i believe as much as anything we are seeing today is not even just the rising rates trade, i think this is a pull back from the liquidity trade. ben bernanke went out there yesterday and said exactly what the central banker is supposed to say. we are in unconventional times. extreme monetary measures. if the economic data keeps improving, we will take the data off the table. the mark set in a panic right now and there is not a good fundamental reason for it, other than they know something we don't know. >> short term moves are always certainly able to, you can whip saw markets around without a doubt, right? these are high data names. but what i would rather focus in on is fundamentals of earnings. you want to own the asset sensitive maintenance that has high exposure to rates. if you look at morgan stanley,

150-basis point move, all of msb bought in, which is expected to happen at some point this year, you are talking about 15% increase over 2014 earnings estimate from that bump in rates. >> interestingly enough that bernstein research showing that j.p. morgan is one of the banks that's done poorest, historically over 40 years, done poorest in raising rate environment. >> something to keep an eye on. >> thanks so much, gentlemen. >> if you're just joining us, yes, we've add big sell-off on top of yesterday's 200 point decline after the fed's announcements after their intentions on quantitative easing. we are down 353 point right is now. >> everybody was saying, when we were at our peak, bill, over 5% correction, no problems. where is the 5% correction? dow may be having its biggest two-day sell-off of the year.

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welcome back. if you're just joining us, we have seen a broad-based sell today. all 30 stocks, all 10 s&p sectors are in the red and sell offs not just contained to stocks. bertha coombs looks at how metal prices have been tarnished as well. bertha? >> the nymex gold seeing biggest drop since april 16. if you look to the massive sell off, once fell through the support level, 1325.00 an ounce. silver getting hit even harder, closing near three-year low. only positive in the met als pit was volatility spiking to two-month high. at this point, traders say with

higher interest rates, and economy not picking up enough to spur demand particularly for copper. you don't see any reason for metals to move higher in the near term. back to you. >> thank you so much. hedge funds taking heat. kate kelly with that update. >> for a lot of macro hedge fund, is a pain of merging markets. china, russia and brazil are down huge today. more than 5% on date if you look at one of the more popular etfs here. that adds up to 17% for the year so far and pain is felt across the board in emerging markets across asset classes. bonds and asian sovereign debt are taking hits, along with currencies too. take a lock for example at mexican peso, a type of currency

hedge funds played today. investors fly to relative safety in currencies. part of the concern is a an issue that beleaguered the u.s. as we climb out of recession, namely, disappointed growth. now that pace is starting to slow in a disappointing way. amid all of that, weakening currency and commodities and greater bank behavior overseas. one key example, chinese central bank which injected capital just today to help calm its inner bank lending rate known as shy bore. rs there were certain of of an economic slow down and here in the u.s. they are getting nervous and are trying to trade accordingly. >> and let's add policy. like what they are doing in brazil. some policies are unnerving people and having them take money out of brazil which has

such a hot place for a long time. >> that is a number of places where you are seeing interventionist posture by the banks. but doesn't necessarily seem to be calming jitters we see in the markets today. in many cases, the reaction is not terribly. we is seen stability as of late. but at the same time you see a lot of across the the board concerns at the moment. >> thanks, kate kelly with the latest there in the. one of the issues here is hedge fund have no long-term conviction. we are on to the next trade because they really have it catch up. because of some of the losses kate is talking about. >> hopefully they are short today because they are making on on the session. about 15 minutes left in the day. >> we are in the final stretch here. we will hear from one trader calling the pull back for a while. find out how far back. when we come back, when it might be safe to get back in.

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welcome back. dow jones tracking the worst day of the year. nearing the close is now down at session lows down 35. points. session lows 370. but we are talking to art earlier from ubs. half billion dollars for sale. sound like a big number but they are big cash stocks. >> it won't take much to pair them up. there are so few large caps paired up. >> good to see you guys, thanks for joining us. you have been cautious. negative on this market. >> we are right -- getting close to 5%. right on some huge technical lines we haven't seen in the market test. 14750 on the dow and 1587 on s&p. it is an important hold here. i don't see any reason we should go higher right now.

there is no real reason. it is hard to buy a dip when the market is down 350. as much as we have talked about it. it is easy to buy when it is down 50 point. >> why? what do you mean? >> people are confirming their belief in that they didn't buy the market rally. now holding back and saying, this is coming my way. i'm going to buy it. but it is hard to be patient when the market is trending higher. people step away and want to wait for higher prices. >> tomorrow we get the expiration date. >> i think that played a role. and i think matt will confirm this. this is not a big market mover. hasn't been for a long time. if you look at the s&p 500, we hit 1600. the minute we drop below that, the market drooped and took another leg down. i think options expiration is a factor here. now that we are well below that, i think it is a factor going into the close. not normally but it is. i think china too. >> china is a major problem for today.

major reason emerging markets are down so much. major reason the dollar rallied so much as well. i think the fed shares responsibility here but china is a major reason we are down. >> if we do drop below those levels, what would that tell you that we're going to see another sharp decline? >> well, is this a sharp decline. 2% sharp. people have been hoping for, at least from my end, people that want to get back into the market, you are looking for 5 to 10% pull back. as painful as it is, that's a great time to buy. >> that's where we are now. >> so maybe we get another 2% pull back. and people get very aggressive. that's what i would hope for, at least for this market. will it happen? we will wait and see. people will rather see buying today than buy into weakness tomorrow. >> thanks so much. we will take a break and come back for a the last few minutes

on what is turning out to be the worst trading day of the year so far. >> then earnings. oracle just minutes from recording its earnings. we will have instant analysis from numbers. see what that says about setting the tone for tomorrow. maybe good news there. could be a help for the bulls. we will see. stay with us. ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. but i see a world burstingorized with opportunity,ople nervous. with ideas, with ambition. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and single countries. find out why nine out of ten large professional investors

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okay, 4 1/2 minutes left. >> tough day at the office. >> worst one of the year. look at all three averages. down about 2%. last time we had this kind of trade together down side was the day after the election last year when we had 300 point plus decline for the dow jones industrial average. we are seeing it again today. we broke below 1598. that is when we saw more selling in that market. and look at the ten-year. maria, up to 2.3 47% we have come off that smartly now. but that is the highest yield of the year easily. that is going back almost two years. >> as we come off of the highs there, he can come off of the lows in stock. >> exactly. that's my point to rick santelli earlier. bond mark set calling the shots and that strong dollar as well. a big impact. one other thing we haven't

highlighted the vix recently. that's traditional yellow flag level and we are back it that first time in 2013 that we have seen 20 on the vix. >> you have to expect that to continue tomorrow with the expiration coming up. >> yes, ma'am. that will bring volatility. talking about, this -- you call this while we were in the commercial, a wash out here. >> yeah. it is, yeah. >> for every 20 stocks going down, only one is going up. >> internals are bad today. awful today. as old southern phrase, they took everything out to the wood shed today. one of those things. this is healthy for a market. if it reacts to the fed statement and when chairman bernanke was going to do, let's clear this out and reevaluate n inside of stocks and move on from there. we tell you, we caught the market. it continued to trade down. quite substantially. so short term, this is an

excellent buying opportunity. i'm waiting for the crowd to come back in here. >> that's the issue though. is this the wash-out. >> we have taken key support levels. we actually went through the april high which was around 1597. the next is 1576. that the old high before we set the new highs this year. that should offer pretty solid support. if we take that out then yes we could see a much greater wash-out, into the 1400s. >> just standing there saying 1587 is the big number for him to watch. >> yeah. >> again, the old all-time high should offer the best support we have in this market. it has just taken off on a life ofity own. began we have been oversold since this morning and it hasn't come back. more sellers than buyers right now. >> everyone is looking at new

technical levels. oracle after the bell. i will head back and get ready for the next hour. maybe that sets the tone for the fundamental level. >> no more shuttle flights. >> no more flight. >> amazing. she got to washington, did then't view with speaker boehner, then flew back just in time to be on the show today. stick around for that taped exclusive interview with john boehner coming up in a little bit. how will the expiration complicate things tomorrow, do you think. >> oh we always get higher volume, especially on a quad witch. we get those four times a year. options on the futures cons contracts so that adds complexity to a normalized market. >> you get a lot of volume. you think you will get a lot of volatility as well? >> you will. a lot of stocks are interest rate sensitive. how people position inside of their option expiration strategies based upon where the

stock prices have gone the last few days, add a great deal of complexity and make it a very interesting day. >> so wait until we get past the -- >> maybe so. see how much down side you have from here. >> that it for us. stick around for the oracle earnings and the exclusive with john boehner. all in the second hour of the "closing bell." >> and it is 4:00 on wall street. do you know where your money is? welcome to the "closing bell." the bears ruled the day on the street. dow closingity worst day of the year. down 5% from highs and today we are looking at decline of 2 1/3 percent. mark set shy of the lowest levels of the afternoon. 370 point just about 15 minutes or so ago. the dow below 15,000. down 352 point on the session. all sectors down across the board today.